Industry Trend Analysis - Changing Demographics To Offset Challenges For Drugmakers From Rising Price Control Measures - APR 2018

BMI View: Argentina will remain as one of the attractive markets for drugmakers in Latin America. Changing demographics towards an ageing population and an increasing burden of chronic diseases, combined with increased healthcare expenditure and the successful implementation of healthcare reforms will increase the country's attractiveness in the long term. However, limitations in intellectual property protection and poor access to healthcare services for a significant proportion of the population will continue to act as barriers to drugmaker investment in the Latin American market.

Argentina will remain one of Latin America's most attractive markets in terms of revenue growth for multinational pharmaceutical companies in 2018. The increase in growth will be driven by an ageing population and an increasing non-communicable disease burden. The pharmaceutical market in 2017 was valued at ARS97.1bn (USD5.86bn), and is expected to grow at a 10-year local currency compound annual growth rate (CAGR) of 12.1%, to ARS304.7bn (USD8.98bn) by 2027. Healthcare expenditure will increase from ARS375.3bn (USD33.7bn) in 2017 to ARS1168.3bn (USD34.4bn) in 2027, at a 10-year local currency CAGR of 12%.

The recent launches of drugs in Argentina support the attractiveness of this market:

  • Grupo Biotoscana (GBT) launched Basilea Pharmaceutica's hospital antibiotic Zevtera (ceftobiprole) in Argentina in March 2018. This is the first launch of the brand in the Latin America region and also the first launch of Zevtera in any country outside Europe. Zevtera is approved in Argentina for the treatment of community-acquired pneumonia and hospital-acquired pneumonia, excluding ventilator-associated pneumonia.
  • In March 2018, the Argentinian Administration of Medicines, Food and Medical Technology (ANMAT) approved the registration of Merck KGaA's Mavenclad (cladribine) for the treatment of adult patients with highly active relapsing multiple sclerosis (MS) as defined by clinical or imaging features. This marks the first approval for Mavenclad in Latin America and following local regulatory processes, the product is expected to be available in the coming months.
  • Eurofarma Laboratorios, in March 2018, submitted a marketing authorisation application for delafloxacin (marketed under the trade name Baxdela in the US) in Argentina with ANMAT. Eurofarma is Melinta Therapeutics' commercialisation and distribution partner for all countries in South and Central America, and the Caribbean, including Argentina. The proposed indication for delafloxacin in Argentina for the treatment of adult patients with acute bacterial skin and skin structure infections is the first regulatory submission for delafloxacin outside of the US.

Overall Health Expenditure To Increase
Argentina: Public & Private Health Spending
Source: WHO, BMI

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